Inflation is slowing in Canada but accelerating in Quebec, where prices are rising fastest for the fourth month in a row. Even if rent or mortgage is the main cause, prices on restaurant menus are also no stranger.
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“Restaurants in Quebec are more expensive than elsewhere. Prices on menus are rising sharply,” says Sylvain Charlebois from Dalhousie University.
Nationwide, restaurants saw prices rise 6.1% in September. In Quebec, the increase is 8.2%, Statistics Canada said in its latest report released Tuesday.
Headline inflation in Canada rose to 3.8% in September from 4% in August. But Quebec rose from 4.6% to 4.8%.
Only Nova Scotia also has a rate of 4.8%. Ontario, for example, is at 3.6%.
Quebec was the inflation champion for four months in a row. In May, Saskatchewan recorded a rate of 4.3%, compared to Quebec’s 4%.
When it comes to food in grocery stores and restaurants, Quebec still leads Canada at 6.7% versus 5.9% in September.
“We are on the right track, but in Quebec it is higher than elsewhere.” Meat and fruit are also on the rise,” says the expert.
The price of pork rose again significantly in Quebec, with an increase of 8.1% (3.7% for Canada).
Fresh fruit also rose 8.3% in Quebec, compared to 3.1% in Ontario and 3% in Canada.
After dinner it is time for accommodation
The price of what we eat therefore continues to rise, but is nothing compared to real estate prices (+6.7% in Quebec in September).
Statistics Canada calculates inflation using the consumer basket, in which housing accounts for 29.8%, compared to 15.9% for food.
Not only are the impacts twice as great, but the price isn’t going down any time soon.
“The real estate inflation rate has been at 5-6% every month for two years and I don’t expect any improvement in the coming months,” says Benoit Durocher, economist at Desjardins.
He points out that we can expect a “wave of mortgage extensions” over the next 24 months, which will increase interest rates for many homeowners.
For example, RBC – the country’s largest bank – must renew 41% of its mortgage loans within two years.
In Canada, mortgage interest costs rose 30.6% in September. In August it was 30.9% and in July it was 30.6%. The data is not calculated for the provinces.
“We’re going to be in there for a while. “There is a risk that inflation will rise,” observes the economist.
